December 2010 - Thank you for your continued support of highbush
blueberries. In the past decade, the industry has made
significant leaps in production. The following information is the
opinion of Tom Payne, Industry consultant, that can help explain the current
market situation.
Production on Increase.
Production has soared in the past decades, with new acres, production and
processing efficiencies. The production of North American Blueberries
in 2010 was projected at more than 480,000 lbs, which is up from 450,000 in
2009. (Final numbers will be posted soon.)
Fresh vs. Processed Producton.
Note in the chart above that there has always been a good balance between
fresh and processed blueberry production. Production for fresh begins
in April in Florida and ends in British Columbia in late September and early
October. The peak of production is in June and July and this is when
berries are directed to the processed (Frozen) market. In the
past few years, there has been a huge interest by the public in fresh
blueberries which has been spurred by the release of compelling health
research related to anti aging and disease prevention. Although
blueberry production has increased yearly, the percentage which goes to
fresh has risen and at times has decreased the amount of blueberries which
go to the freezers and further processing.

Chart above: new blueberry products worldwide.
Factors Effecting Supply.
Food processors are continually asking, why it is difficult now to obtain
frozen blueberries.
Here are some theories:
>Demand in the poly bag market. Along with the consumer demand for
fresh blueberries, a higher percentage of frozen blueberry is going to the
frozen market in consumer poly bag packages. This small category is
developing fast as consumers seek the goodness of blueberries year-round.
>Export market demand. The demand for frozen blueberries has boomed in
export markets, especially Japan, South Korea and China. Manufacturers
are producing blueberry containing products at record clips which has
created early season demand for frozen blueberries, juices and concentrates.
Media in Korea have described this as "blueberry mania," and the same
situation exists in China where their demand has far outpaced their local
production.
>New market Interest. Blueberry demand is worldwide, and we are
experiencing new demand from unexpected places including Mexico and Central
America, the Middle East, Africa and Southeast Asia.
>Decrease in production in the lowbush sector. Challenging production
years in the US and Canadian east have resulted in smaller crops and since
most of the lowbush "wild" crop goes to the processed market, this has led
some manufacturers to switch or partially switch to highbush "cultivated"
blueberries.
>New Products in the USA. Lower prices two years ago and steady
supply, let to a flurry of new blueberry products in the USA and Canada.
A number of leading companies launched new blueberry-containing products top
capitalize on consumer demand.

Blueberry strategies for the future.
Here are just a few suggestions for staying in the blueberry
wave.
>The current tight situation for frozen blueberries should be improved in
the near future with significant new plantings coming into production.
Look at the above chart which shows the red bar for the West and yellow for
the South.
>Check out the number of offerings of frozen blueberries available.
While IQF may be in tight supply, other offerings such as case frozen and
straight pack may be in better availability. Although IQF is essential
for many products, there are many uses where the other forms are just fine.
>Stay engaged in the market early. In the past there were always
stocks of blueberries in cold storage. Nowadays a potential buyer must
pay close attention to the actual supply supply situation in their region
and consult with the suppliers regularly on the current situation.
This may well mean purchasing earlier in the season than in the past.
Thank you for your support of blueberries, and for hanging in there during
these challenging times!